4 Responsabilidades con las Empleadas documento enviado a los empleados de P&G Domestic Service in Panama General Responsibilities of Employers February 2011 This document is intended to provide general guidelines on how to properly manage domestic service labor relationships according to the local laws in Panama. The Company recognizes that in a site hosting several foreign families, it is important to guide P&G employees on their legal responsibilities whose compliance may be critical in the country. To this, it is important to remark that authorities are currently performing in-house audits to ensure that domestic service is properly enrolled in the social security system of the country. Note that this guide cannot be considered a step by step guide on how to hire domestic service, but a general description of the legal responsibilities that employers have. Also, this guide provides information of local lawyers that can be contacted by P&G employees (at their own cost) to obtain support on these topics. Finally, note that this guide cannot be considered legal advice neither a long term commitment to inform about any future change in labor conditions for domestic service. Main responsibilities as employer of domestic service Find below a list including the main responsibilities of employers when hiring domestic employees. Employee should be subscribed in the Social Security System. This is only if the employee works 3 or more days per week for you and economically depends on you (you are your main source of income). To this, it is important to remark that if the employee does not have a valid visa to legally work in Panama, the Social Security will not allow the enrollment so that the employer will also need to obtain a proper working visa for the employee. Have a written or verbal contract; only if the employee works 3 or more days per week for you. Employee must have proper rest every day (from 9:00pm to 6:00am). Employee must enjoy proper vacations and national free days off. Vacations will be 30 calendar days after 11 months of continuous work. Pay the employee s salary (no less than $ usd per month) Pay the employee s thirteen-month salary bonus (in April, August and December employer must pay an extra amount equal to 1/3 of employee s monthly salary). Provide healthy food and comfortable shelter for the employee. Pay the funeral costs in case the employee dies. Give the required permission to the employee to assist to school, if it does not interfere with the job. This right applies to any age however; please consider that minimum age to hire someone for domestic service is of 15 years. Proper legal payments when the labor relationship ends.(proportional vacations, proportional thirteen-month salary bonus, seniority bonus, prior-notice payment) If the labor relationship ends without a proper cause established by law, a proper payment (indemnity) must be paid depending on the time the employee worked.

5 Responsabilidades con las Empleadas documento enviado a los empleados de P&G Social Security efforts to maximize enrollment As the majority of domestic employees in Panama (47,000 of 53,000) are not enrolled in the social security system, authorities from social security office are implementing different initiatives to maximize enrollment of domestic employees into the system. These initiatives include among others: Massive enrollment sessions in Atlapa Convention Center and Roberto Duran Stadium In-house audits in residential areas such as Costa del Este, Punta Pacífica, Punta Paitilla, San Francisco, etc. Further information and assistance In case you need support and/or additional information on how to manage domestic employee, you must contact a local lawyer or use the references included below. It is important to note that the Company does not support expenses related to domestic service so any legal service will be at your own cost; to note, you must consult and aligned legal fees before receiving any legal support from a lawyer. Legal advisors that you may contact: Mauad&Mauad Lic. Rocco Naranjo Phone (507) , Arias, Alemán y Mora Lic. Marcela Beloso Phone (507) , Legal Team Human Resources Team

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